• The flows of information, goods, service, capital and people • The shift towards a more integratedand interdependent world economy (Hill, 2014)
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what are the 2 types of globalisation?
markets and production
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why do we need globaisaion of the market? what is it?
1. Falling barriers to crossborder trade for global market 2. Standardized products worldwide 3. Global tastes and preferences converge
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what are the difficulties of a globalisation market?
Difficulties: Differences still exist among national markets (e.g. Burgers in McDonalds; Walmart’s failure in South Korea and Germany; Tesco’s fresh & easy in USA etc.) • The most global markets are forindustrial goods and materials that serve a uni
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what is globalisation of production? and examples
• most products are made in different countries because Differences in cost or quality of the factors of production. labour land (human) capital • For example, OEM plant in Mexico but IBM call centres are in Britain
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what are the difficulties of globalisation of production? (4)
Difficulties: 1. Formal and informal barriers to trade (e.g. US-China tariff trade war) 2. Barriers to FDI (Foreign Direct Investment) 3. Transportation costs 4. Issues associated with economicrisk (e.g. Brexit shock to Germany manufacturers) 5.
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what are the difficulties of globalisation of production? (1)
5. Issues associated with political risk (e.g. Trade War: South Korea vs. Japan)
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the technical impplications of globalisation
LOOK AT TABLE ON NOTES
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Hill (2014) has proposed 3 dimensions on globalisaiton debate
1. Globalization, jobs, and income. 2. Globalization, labor policies, and the environment. 3. Globalization and national sovereignty
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Other cards in this set
Card 2
Front
what are the 2 types of globalisation?
Back
markets and production
Card 3
Front
why do we need globaisaion of the market? what is it?
Back
Card 4
Front
what are the difficulties of a globalisation market?
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